Significant Investment
Samsung Electronics has raised the mid- to long-term bar in the robotics business, one of its future growth drivers. The company has begun a full-scale review on how to develop a humanoid robot that walks on two feet like a human.
According to industry sources on Aug. 2, Samsung Electronics has recently begun establishing a strategy to enter the robot market with the Planning Team of the Device Experience (DX) Division taking the initiative in the project. The move aims at the field of humanoid robots powered by artificial intelligence (AI) that are being developed by Tesla, Google, and Microsoft, analysts say.
As a result, the Korean tech giant has reportedly put off the launch of wearable robots for healthcare. Initially, it planned to launch its first commercial wearable robot, Botfit, in the second half of last year. Since then, it produced a prototype, but has pushed back the actual release date several times to improve product quality.
Samsung Electronics revised its mid- to long-term strategy due to a wave of commercialization of AI humanoid robots. Robots that mimic the human form are expected to have a much wider range of uses and potential than regular robots, from carrying and arranging items to handling hazardous materials and rescue activities. According to market research firm Precedence Research, the humanoid robot market is expected to reach US$28.66 billion in 2032.
U.S. electric car giant Tesla has already unveiled a prototype of its humanoid robot called “Optimus.” The robot is 172 centimeters tall and has a humanoid appearance. The company is reportedly planning to sell it as early as next year for US$20,000 per unit.
Last month, U.S. semiconductor company Intel invested US$9 million in AI humanoid robot startup Figure.
With major tech companies such as OpenAI, the developer of ChatGPT, announcing the launch of new products that incorporate the latest advances in generative AI into humanoid robots, Samsung has no choice but to change its strategy of entering the robot market with simple serving or walking assistance functions. In 2021, Samsung Electronics announced that it will invest 240 trillion won (US$185 billion) over three years in future new businesses including robotics and AI. Earlier this year, it acquired a 10.22 percent stake in Rainbow Robotics, a South Korean collaborative robotics and humanoid company, and struck a call option deal with the company in March. This was the first time Samsung has invested in a publicly traded robotics company.
Market insiders predict that the success of the robotics business will have a major impact on securing future growth engines for Samsung Electronics. Samsung Electronics posted an operating profit of 668.5 billion won in the second quarter of this year, down 95 percent year on year, as a global economic downturn dampened consumer electronics and smartphone consumption and semiconductor demand.